Personal Finance KPI

I just read a blog today and i found it very useful which can be served as good reference to achieve financial freedom. There are some similarity between the blogger and myself. He is around my age and working in oversea too. His blog as follow:

http://mercurychong.blogspot.com/

He had a very clear objectives for financial freedom. I tried to measure my wealth accumulation using his financial key performance index.

退休目标(Objective) 达成率 (Target achieve %)

一间没有贷款负担的自住房产 Own property no loan 100%

一架没有贷款负担的车子 Paid car with cash no loan 100%

一百万的净资产 1 Million RM net asset 100%

平均每月五千元的被动收入 Passive income RM5k per month 100%

Good, KPI NOV 2013, now i know how far to go!

Paying cash to buy car still the smartest way, Provided your saving growth is fast enough!

Is has been a while i didn't blog. Quite surprise thousands of people has actually came across this blog site. Recently, i just bought a car about RM 120,000. The decision was made after a long deep research for 2 options. 1st, to withdraw money from my flexi-loan account. For this choice, i will be expecting to lose 4% interest forever! It about RM 400 every month. 2nd option, the cash will remained in my bank, i get a car loan from bank. After calculation by considering loan duration, monthly repayment, total interest, another important factor is that how fast can you save back RM 120,000? If it is shorter than the loan duration you plan to take, for e.g. save 120k within 1 year vs take a loan for 5 years, Of course Pay cash is how you win the bank! Another disadvantage on taking car loan as it will reduce your cash flow. Also, the interest charged by bank is not actually 2-5%, it is about 8%! WIKI for EFFECTIVE INTEREST.

Unbelievable! Value for Money!

I am currently stay in China. I can get this with only RM 25, free delivery. Lelong.com is selling RM 36.

Shared from FB 闲谈股市，理财篇

人物介绍：mesoon79

介绍原因：节俭，储蓄，纪律，长期投资者

估计家产：一家双层排屋

股票：总值100k

「故事篇」

由2003年开始打工到2009年，我是实实在在的月光族。 可能家里没有什么负担，薪水拿到都是拿去吃喝玩乐。

每月到底有剩多少钱或者overdraft我都没在意，总之银行户口还有剩钱就好了。

2003~2009 这一段时间唯二做得对的事情就是

1． 2006年追到我现在的女朋友

2． 2008 年买了一间双层排屋（因为供完车了，就找屋子来供。不然的话也是花完的）

买成了房子之后就有一点感觉了，发现到银行户口真的没有什么钱剩了。钱都到哪里去了？没有钱在口袋真得不好受。 就开始2009年学习做每天消费纪录。从记录分析出来的来针对性来减少开支。比如少去高消费餐厅，减少去Pub的次数，减少去郊游。。。

努力了半年，才开始又看到成效的时候竟然发生个人建康问题（私人问题不想在这里提起）。医疗费搞到债务高筑，只是还医疗费就要占每个月40%的薪水。实在太难受了。好方面想是2010年健康已经完全恢复了，可是医疗费还没还完。日常消费的却越来越省了，不过只是还医疗费就透不过气了。

「理财篇」 就这段经历对消费观有改变了。虽然每个月还是没钱存，不过可以看到我的个人消费日渐减少，而且每个月还的医疗费也越来越少了。心理质数也越来越强了 ，因为我相信坚持这样下去一定可以看到成果的。间中还想办法做开源节流的方法如：

1． 租出多余的房间

2． 少和女朋友出去Shopping （一起待在家就好）

3． 改乘motorcycle

4． 不去Pub了

5． 少吃外面，回家里吃咯

6． 日间就用公司电话来打，自己的电话可免则免

7． 看电影只看星期三的（有半价）

8． 多呆在公司做OT

9． 家里冷气都不用了

10． 在还没达到财务松动的时候都不旅行了

11． 平时的休闲活动都改去跑步，运动，爬山（朋友常说我的活动好像老头子）

就这样我的储蓄率就一直增加，同时债务慢慢的减少

储蓄率： 2009：-10.5% 2010：0.32% 2011：7.25% 2012：32.25%（摘至3月） 2013：Target 应该会达到50%

债务率： 2010：40.2% 2011: 24.0% 2012: 19.1% （摘至3月） 2013: Target 应该会达到9.3% 2014: 债务还完

2011年，不懂是辛运还是倒霉，我家公司关闭了。 我在2010年时还在这里服务，不过2011年我就被调取新产品的子公司。旧同事就都被offer VSS 了，而我还有保持旧公司的7 年的Seniority，所以我也被赔了一笔赔偿经~大约40K。 当然我一分钱也没花（只和女朋友去国内旅行庆祝）。而这笔钱就成为我的股票投资基金勒（关于投资的故事会在投资篇讲解）

这段经过然我有了一些领悟：

1． 你不理财，财真的不来理你（就算小数目也好）

2． 凡事起头难，然它成为你的习惯之后，你想不做也难（消费纪录已经成为我的日常习惯）

3． 区分你想要和你需要的东西。巴菲特说过：如果你一直买一些你想要（不需要）的东西，那会有一天你会卖你想要的东西来换你需要的东西

4． 身边人的支持就是奋斗的最大动力

5． 不要去追求外表的风光，而内壳是空的

6． 面对问题时，不要想办法去逃避。那是让你成长的营养

「投资篇」

开始学习投资时，真的什么都尝试。外汇，黄金，股票，基金 什么都试一试。当然碰到头破血流。 然后在Cari里看到冷眼和巴菲特两个人的名字，先看了冷眼的电子书，对股票这个投资有了重新的认识。再加上巴菲特的投资理论，实在太棒了！！！后来又看到了Peter Lynch 和KLSE.8K的电子书，让我感受到了大马股票的历史和经历

然后从Cari有认识到Investalks 这个论坛，发现到这里比Cari的功力更高一级。好多高手如：逆风，Tan81, Thermofish, 蛋散，Jacky Choo, 8 year, 糊涂。。。都无私的分享他们的见解和经历 。实在让我受益无穷。

集合以上资源，让我懂得什么是ROE, PE, NTA, EPS, DY 的基本知识。然我懂得去读年报。更让我慢慢地爱上了股票

以下是我集合了各家名人而整理出一套选股规格：

1． 只选成长股而且稳定的公司

2． 5 年ROE都 >15% 的公司

3． PE < 10

4． 有派股息的公司，最好是 >3%

5． 财务健康而稳定的公司

6． 组合规定不多于5只股

这是我目前的投资组合：

1. Zhulian 14.49%

2. CBIP 10.29%

3. Kfima 11.72%

4. Mudajya 8.60%

5. Tambun 7.54%

现金：47.67%

总投资基金：35K

投资回凑：

2011年：21.07%

2012年：1.16%（摘至3月）

第一阶段的目标：

1． 平均每年回凑15% （2010 achieve!!!）

2． 年股息达到1K （2012年 = 160，摘至3月）

3． 总投资基金达到100K （2012年 = 35K，摘至3月）

4． 年储蓄率30% （2012年 = 32.5%，摘至3月）

Property Profit Calculation

Happy new year 2013! Yes, i am back to blog about my financial again.

Today i am going to share about how to calculate property net profit.

Property price: RM 1,250,000, after 2 years, it now become RM 1,600,000

Gross profit: RM 350,000

You need to minus the following:

-Lawyer fees+ Stamp duty RM 52,000

-15% Property gain tax(max) RM 52,500

-10% Tax RM 35,000

-Total daily interest paid to bank RM 0.00 (assume 0 interest)

Net Profit = RM 210,500

+ 15% Capital (Down payment) RM 187,000

Total cash on hand after transaction completed = RM 397,500

Car Loan. How to win?

The above table illustrated a person who has cash of 450,000. He/She need to decide to Deposit more cash or less cash for downpayment (DP), so that the passive income from the FD earning is able to generate extra cash to cover her/his car loan. Obviously, when the person paying less interest to the bank, pay higher downpayment, shorter loan period and ensure cash flow is positive every month is the best financial manager way.

Chinese Panda coins for Investment

I wake up in one of the morning, later look at a few video Jim Roger interview in Youtube, it seems like Silver is a good investment, without consider much, i went to a goldcoins shop distributor here in Macau and bought a few.


You Tube:Jim Roger's 2012 Prediction - Buy more silver whenever price is lower!


For those who interested, i can assist you to get one of these. You can look at the Right column of this website, so just HIT the "BUY NOW" button before the price is getting higher and higher!


Payment method:


Do not worry about the seller rating as i am a genuine trader with my actual personal detail registered in the PAYPAL website. If you want to pay me through bank, you can do this through Maybank2u.com. Of course, you will see my full name detail display before fund transfer.


Why invest Silver?


1. It growth on strength year 2000 USD 5, 2012 USD 33
2. Growing wealth encourage large middle class China people buy silver
3. Affordable, less risk and greater return compare to Gold
4. Culturally, China ppl in general likes collectible rare items
5. Malaysian hardly access to world famous Panda Coin collection (able to sell high in RM in south east region)

China Panda Silver Coin Specifications
Size	1 Troy Ounce
Diameter	40 mm
Purity	.999 Fine Silver
Total Weight	31.105 Grams
Legal Tender Value	10 Yuan
Thickness	2.98 mm
Year	2011
Place of Issuance	People's Bank of China
China Mint Factory	Shanghai Mint Shenyang Mint Shenzhen Mint
Package	Protective airtight capsules
Quality	Mint State, Uncirculated New
Bulk Uncirculated Coins	6,000,000

Design

Front

A Panda mother and her cub are lolling about in a bamboo setting.

Back .

The periphery of the Temple of Heaven in China’s capital of Beijing marked with the country and year of the issuance of silver coins

Introduction
China Silver Panda Coins are very popular with both coin collectors and investors.

Each Panda Silver coin is beautifully crafted from the meticulous craftsmen at the China Mint and feels like a miniature sculpture in your hands.

Chinese Panda coins are genuine legal tender coins, issued exclusively by the People’s Bank of China. Each of the pure Silver Panda Coins is minted in one troy ounce of 99.9% fine silver. At very affordable prices, these coins make great gifts and are an excellent addition to any coin collection.

Each China Silver Panda coin is guaranteed to be in Gem Brilliant Uncirculated condition. The yearly design changes allow collectors to add variety to their collections from year to year and to accumulate one of the most beautiful series of Silver world coins.

The China Panda 1 oz .999 Fine silver coin is a great addition to your collection or investment on .999 Pure silver coins. So purchase yours today. Don’t miss this opportunity!!!

2012 Ups and Downs

Before 2012, most people had predicted 2012 will be the tough year for global equities. US dollar may collapsed. Euro zone will break, Greek default, China slow down, property bubble etc.


However, this is not happening at all. Most governments had do their hard work to ensure they will continue to win their elections this year. Greek government debt deal will passed. Governments will spend within it means but the consequences you will see a lot of protest on street will be increasing around the world.


First month of 2012 is the best stock performance month, US job employment increase, Malaysia property price doesn't go down, property will have 20% price increase announced by REDHA (A Malaysian Property Body) recently and might be impacted by choppy Euro zone economy.


So, why the worst is not happening?


Capitalism system - Due to the loosen regulation in this decade, the corporate executives and big bosses had stop taking more $ out from the system. They behaved by many regulations had introduced by the government with the aim to share their profit with the majority of the people and create more middle class to prevent social instability like ARAB unrest. This will also help cooling down/inflation the economy which caused by money printing just to profit 1 private corporation through treasury bond purchase and to achieve government objectives to balance up trade deficit and pay it's own debt.


So what is my investment strategy for this year?


Look for investment opportunities which will appear in the challenging time. Don't worry, Malaysian housing price will not came down, global economic will not collapse, Yes there is problem with the system, but plenty of ways to fix it.


1. Buy real estate (malaysia) due to low interest rate
2. Buy stock with high dividend when price at low (long term)
3. Buy rare mental-SILVER, Gold not recommended

Deflation! It's Happening Today

“buy” list: High-quality corporate bonds; stocks that pay reliable dividends; traditionally defensive utilities, consumer staples and health care stocks; agribusiness stocks, such as seed and fertilizer companies, crop producers and farm-equipment makers, and gold. - Market Watch


CEL, BGCP, YTLPOWER, ZHULIAN, AMWAY


傳委投行進行企業活動‧楊忠禮或私有化
大馬財經 2011-10-15 19:17
（吉隆坡15日訊）楊忠禮集團據傳委任本地投資銀行進行潛在企業活動，不排除涉及私有化或換股活動，以重新調整集團的業務營運。
目前無法掌握企業活動的詳情，不過市場人士相信可能包括私有化或換股計劃；一旦涉及私有化活動，楊忠禮置地（YTLLAND,2577,主板產業組）及楊忠禮電力（YTLPOWR,6742,主板基建計劃組）將是潛在目標。
分析員表示，以當前的估值計，楊忠禮置地及楊忠禮電力都已遭低估，而董事經理丹斯里楊肅斌也曾透露會將遭低估的公司私有化。
“根據估算，楊忠禮集團須以6倍債務營運盈利比來私有化楊忠禮電力，低過基準的7倍，後者每年帶來12億至13億令吉現金。”
馬銀行研究對楊忠禮電力潛在被私有化並不感到驚訝，因其估值已寫下2003年5月以來的新低，至於楊忠禮置地的誘人之處則在於其地庫位於策略性地點。
楊忠禮機構（YTL,4677,主板貿服組）持有楊忠禮置地及楊忠禮電力各57.9%及51.72%股權。
楊肅斌早前表示，楊忠禮機構擁有120億令吉現金，可放眼大型的併購計劃。（星洲日報／財經）

Malaysian Budget 2012

Read from internet news website, a survey ask:


For a Malaysian 2012 budget, what government should offer?


你期望2012年財政預算案裡有甚麼措施?
請選擇一個答案選項
1.減低個人所得稅 - reduce tax
2.降低房屋／交通工具價格 - reduce house & car price
3.增加日常生活必須品津貼 - add subsidy/allowance
4.設定最低薪資制 - set min salary


I think for the sake of the good govern and for the people, not corrupted & fair country, the answer should, of course should be reduce car price (Not Proton/AP holder bias), reduce subsidy/allowance (all subsidy/allowance now benefit only cronies) & set min salary (increase people income not siding corporate/bosses making big profit. As you can see now,a graduate degree holder still earning RM 1800 a month!??!! WTF)


So, when people had higher income, they can afford to buy house and support the country tax income, their lifestyle will improve. Now Malaysian is spending USD 18,000 for a 1.3 small local made car where people in China, Hong Kong, US, is spending the same amount of money for full spec Honda Civic!!


Now the management of the govt had to change lah...."Malaysia ini memang banyak masalah, tak payah saya sebut put".

Fix Deposit

本地銀行業面對資金壓力?


Local Bank looking for cash rich individual/companies by running high FD interest rate promotion.


Maybank Promotion FD 4.18%


OCBC Promotion FD 3.6%




Also, is this an opportunity and good time to invest high dividend stock for fix income compare to FD? Heard October will dip to lowest and start rally in Nov.

ZHULIAN 7.8%


AMWAY 7.4%


STAR 16%


CEL 12%


YTLPOWER 5.3%


Which one to go? Hard decision. This is not invest, this is gamble.

This time is different from 2008

Banks are rich with CASH. People are rich with CASH. Corporate are rich with CASH.

So why wait, take the good time and opportunity to buy value stock.

How many bear we can meet in the life time? Go green for asian stock tomorrow!

华尔街日报

上次的危机是由下向上扩散的。危机开始于过于乐观的买房人，然后沿着华尔街的证券化机器向上，在信用评级公司的推波助澜之下，最终影响到了全球经济。那次是金融业的崩溃导致了衰退。

与之相反，这次的困境却是一个由上而下的过程。全球政府难以刺激本国经济、保持良好的财政状况，他们渐渐失去了企业和金融界的信任。

这进而导致私营部门支出和投资的锐减，形成一个恶性循环，造成失业率居高不下和经济增长乏力。在这种情况下，市场和银行是受害者，而不是始作俑者。

第二点不同或许是最重要的：在2007-2008年的危机前，金融公司和家庭一直享受着毫不费力就获得的大量信贷。

当泡沫破裂时，随之而来的急速去杠杆过程造成了大规模的衰退性冲击。

这次，问题恰恰相反。经济低迷促使公司和个人将钱存起来、避开负债，造成消费和投资增长乏力。

最后一点不同是前两点不同的一个直接结果。鉴于2008年金融灾难的成因，当时有一个简单但痛苦的解决方法：政府不得不介入，以通过低利率、银行救助和向经济中注入现金提供大量流动性。

Objectives of this Blog

In this blog, i going to share many of us would think that a very personal or in another words PRIVATE stuff. 

Why? 

I had my first job 10 years ago with a public listed company with good salary, the "good salary" here doesn't means you get a high salary or better than average earning of a fresh graduate but with saving over 75%  of monthly income. Not bad huh...

Very constantly, i managed to maintain the same percentage of saving monthly until today, Year 2011. Although i had changed a few jobs, buy a car, did a few international travel, buy a house my saving rate still as high today.

For those who visit my blog, i need your help =). Today anyone who had some personal finance experiences know that we are in the HYPER inflation period. I am going to publish my current financial status and i need public opinion on the management of my asset, cash, stock at the same time exploring and brainstorming what opportunity i could have, compare to others. 

Honestly, i do not know i am a average wealth, poor or even a middle class income person at this stage.

Your comments are greatly welcome.  Thanks in advances.